Why does it become difficult for farmers in rural areas to take loans from government banks? Read the following reasons and choose the most appropriate option:
I. Lack of collateral
II. Complicated procedure
III. Higher cost of borrowing
IV. Lack of awareness
[1 marks]
Which of the following groups in urban India depend on informal sources to meet their credit needs?
[1 marks]
Loans From Cooperatives
Besides banks, the other major source of cheap credit in rural areas are the cooperative societies (or cooperatives). Members of a cooperative pool their resources for cooperation in certain areas. There are several types of cooperatives possible such as farmers cooperatives, weavers cooperatives, industrial workers cooperatives, etc. Krishak Cooperative functions in a village not very far away from Sonpur. It has 2300 farmers as members. It accepts deposits from its members. With these deposits as collateral, the Cooperative has obtained a large loan from the bank. These funds are used to provide loans to members. Once these loans are repaid, another round of lending can take place. Krishak Cooperative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses.
(36.1) Cooperative societies come under which source of credit ?
(36.2) Mention any two sources of capital of cooperative societies.
(36.3) Explain the role of cooperative societies in increasing the income of farmers.
[4 marks]
Why do lenders often require collateral before lending loan? Choose the most suitable option from the following.
[1 marks]
Look at the given picture carefully and infer the income of the bank.
Choose the correct option from the following.
Note: The following question is for Visually Impaired Candidates only in lieu of Q. No. 20.
Which one of the following supervise the functioning of formal sources of loan in India?
[1 marks]
How is credit essential for economic activities? Explain with examples.
[3 marks]
Which one of the following is a formal source of credit ?
[1 mark]
(a) Explain any three functions of the Reserve Bank of India.
OR
(b) Explain the role of banks with regard to money which they accept from the public.
[3 marks]
How is 'Demand Deposit' an essential feature of money?
[2 marks]
(a) Differentiate between formal and informal sources of Credit.
OR
(b) How does a bank work as a key component of the financial system? Explain.
[3 marks]